Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
' x2 i5 s' @, J  J. Z$ i; ]9 F; kexpect much from Crude Oil producers and future is not with the
3 y2 {. W6 v+ D! j0 y, `companies producing Jet fuels but Biofuels. Also no wonder if some of
4 J# Z& n8 @* M5 U0 b- athese oil producer will go bankrupt or out of the business even if
- G+ x9 U. V; I0 |6 n7 [/ scrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils

9 E+ T# R# [" URecently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
) l' U& d' n( XA year ago these things would have spiked the price of crude oil by at
9 q1 o8 @3 T$ @! U; h6 p+ Rleast $50.00 per barrel. Today, oil price declined by a record amount.

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  i' t6 d8 l# D  T6 R( f) jThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:


2 n  q0 n; O! p% L4 v1. New oil has been found in Canada, Montana, North & South Dakota and
" W5 i6 l/ M- z$ k' N8 e5 Q# T. ^in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.

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2. New natural gas has been found in Pennsylvania and West Virginia.
8 [, Q8 J/ g! v) W" yThis is the largest find in North America.
, M( I7 I- |0 L1 w

- y5 t2 l+ U& l/ n3. New methods of injecting CO2 and surfactants into oil wells is
! A- S2 `+ h" dbeing used to double their output.


, H+ f0 d+ U+ x+ K' p0 a& m4. Production of bio-fuels is beginning to reach critical mass. Bio
5 o0 e* V/ v& ^1 S* sfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
3 d( V* o3 u1 N0 T9 eracing to produce bio fuels.
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$ x3 q( e+ F( d3 B! N( d5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
  T0 }1 R! w  v8 j3 Ncattle, turkey and chicken processing plant will soon sell their fat
7 z' I" E. Z- e6 r# f( q, p* Eto bio-diesel producers. One pork processing plant in Oklahoma is
0 x7 D' K+ W0 t5 dproducing 30,000 gallons of bio-diesel per day from pork fat.


+ n% X* C* {/ U9 f0 p6. There are 99 nuclear reactors in various stages of planning and
7 |3 A& S' K, t2 H; Econstruction around the world at this time. Several hundred more are
$ u* g& T+ ~5 T9 [+ u4 vexpected to be built in the future. Much of the energy they produce
will replace oil.
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7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
) R! ^/ S$ g" G  q% v( z# awith new more fuel efficient equipment. Airlines and railway companies
, g7 B4 e6 Q' i! y5 m- G/ Yare experiencing 20% to 25% better fuel econony with the new
equipment.

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( t4 [8 c# Z4 t% B, _! V: P/ QAirlines are flying airplanes with bio-fuel. They are finding the bio-
- R  a$ M4 \8 ]8 ?fuel is cleaner and performs better than jet fuel.
( O' a# z" U( C

. J6 b  G8 O7 P" Z' E! I8. Cities and counties throughout the US are selling the rights to
, I. n4 X- p* b9 r# r: c5 a0 icapture methane gas from landfills. This is a huge source of gas
- h/ A: \. ]# navailable at very little cost or risk. The gas is displacing crude
5 M5 O2 C* z- p; A" Woil.


( U! D& M- f0 y: U- f9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
oil wells.

7 D# d, _4 {& H0 o& Q& c, u
& S" D0 s# ?" u& Q; V5 _10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.

$ m% n( m- G" d8 {
Each of the above by itself will not make a large difference in the
7 h  j. a+ f& U- V  Q, k) vprice of crude oil but the sum of all of them together is world
+ H; K7 Y' t- |- Q" y+ T1 [changing. The important thing is that OPEC no longer has the ability
6 n2 B( y. |! x& z2 g" w4 `- \to control oil prices.
$ R6 v) }9 ?2 h8 X7 f' J) }

With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
" ~6 H2 w+ M# l, F0 rvalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
+ @+ p: H1 D1 [3 O
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2 y3 I, T& |4 P4 p- F3 }The above articles are from WSJ .............PUBLISHED ON 9TH JAN
3 n+ I; f& V& @# I8 j) [9 i2009 ... FYI-Only